Tough at the top

The CEOs of Morgan Stanley and BofA are taking the reins after the worst seems over. But as Q4 results show, there are plenty of challenges to keep them busy: underperforming businesses, merger headaches and culture clashes. Gorman and Moynihan aren t in for an easy ride.

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Morgan Stanley reported income from continuing operations of $413 million in the fourth quarter, or 14 cents a share on net revenue of $6.8 billion. Revenue took a $600 million hit as the firm's credit spreads continued to improve.

Bank of America reported a fourthquarter net loss from continuing operations of $194 million. Including preferred dividends and the cost of repaying TARP, BofA lost $5.2 billion, or 60 cents a share. Improvements in Merrill Lynch's credit spreads impacted revenue by $1.6 billion. The bank benefited from a $1.2 billion tax break and a $1.1 billion gain in the value of its stake in BlackRock.